Dual Funnel Business

A dual funnel business model combines a wide base of low-cost users with high-value enterprise customers to create a more stable and profitable business.

Core Concept of Dual Funnel

• Combines two distinct customer segments:
  • Wide funnel: Free or low-cost users
  • Enterprise funnel: High-paying enterprise customers
• Creates brand recognition through mass adoption
• Benefits from viral loops when users share with others

Value Pricing Strategy

• Enterprise pricing isn't based on better features, but on:
  • Customer's ability to pay
  • Value derived from the product
  • Complexity of enterprise sales and maintenance
• Price triggers for enterprise tier:
  • Need for terms of service redlining
  • PO invoice requirements
  • Single sign-on requests
  • Salesforce integration needs

Pricing Differential

• Enterprise vs. Regular pricing example:
  • Regular: $250/month
  • Enterprise: $25,000/month (100x multiple)
• Justification for price difference:
  • Not based on feature superiority
  • Based on customer value received
  • Accounts for enterprise service overhead
  • Reflects customer's revenue potential

Business Model Benefits

• More stable than pure enterprise model
  • Avoids reliance on few large deals
  • Reduces pressure of enterprise sales grind
• Builds brand through wide adoption
• Creates natural upsell pathway
• Leverages viral growth through user sharing
• Combines steady small revenue with large enterprise deals